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96 THE BIG FINISH WRAP YOUR HEAD AROUND THE MARKET'S LEADING INDICATORS A NATION OF OVERLEVERAGING Mortgage rates may be rising, but they're still at historic lows, and that's sending buyers to the market in droves—many of them who, when it comes down to it, probably aren't in the right place to buy. In the last few years, low mortgage rates have caused an overconfidence problem with buyers, and that's pushing many people to buy homes long before they're really ready. Without enough savings, monthly income, or rainy day funds to handle their new financial responsibilities, these homeowners end up overleveraged, drowning in more debt than they can feasibly pay back. It's a common scene across the country, and it's one that's made obvious by recent data from WalletHub, which reveals the true state of overleveraging in in the U.S. THE LEAST OVERLEVERAGED CITIES On the opposite end of the spectrum is Decatur, Georgia, the country's least-leveraged city—at least out of the 2,533 cities WalletHub analyzed. Homeowners in the small southern town have a median mortgage debt of just $131,215, a median house value of $365,900, and a median income of $56,026. The remaining lease over-leveraged cities are strewn about across the nation, many in the South and on the coasts. Rank City Overleverage Score Median Mortgage Debt Median House Value Median Income Mortgage Debt-to- Income Ratio Mortgage Debt-to- House Value Ratio 1 Decatur, GA 3.87 $131,215 $365,900 $56,026 234% 36% 2 Bronxville, NY 4.56 $265,637 $916,700 $81,453 326% 29% 3 Naples, FL 6.14 $181,402 $726,600 $42,937 422% 25% 4 Homosassa, FL 6.82 $95,272 $208,600 $38,913 245% 46% 5 Scarsdale, NY 7.52 $411,386 $1,230,600 $104,234 395% 33% THE MOST OVERLEVERAGED CITIES Homeowners in San Luis Obispo, California, are the most out of their league when it comes to home debt. Ranked as the No. 1 most-overleveraged city in the country, its residents have a median mortgage debt of $333,641, a median house value of $546,000, and a median income of just $16,565. The mortgage-to-debt income ratio is a whopping 2,014 percent, while the mortgage debt-to-house value is 61 percent. Rank City Overleverage Score Median Mortgage Debt Median House Value Median Income Mortgage Debt-to- Income Ratio Mortgage Debt-to- House Value Ratio 1 San Luis Obispo, CA 59.52 $333,641 $546,200 $16,565 2014% 61% 2 Williamsburg, VA 58.76 $200,768 $320,600 $10,207 1967% 63% 3 Brooksville, FL 57.44 $103,023 $48,200 $21,953 469% 214% 4 Bay Point, CA 56.68 $236,031 $165,900 $20,829 1133% 142% 5 Willis, TX 54.81 $133,919 $70,300 $22,159 604% 190%